"We anticipate this to continue through 2020 despite the current low oil price environment," President and CEO Jeff Chisholm said in the release.
"With a very strong balance sheet, an active 2020 drilling program funded entirely through after tax cash flow from low cost high netback onshore Thailand Production, the company possesses the financial and operational strength to withstand and grow in an environment of low oil prices and take advantage of any opportunities that may present themselves during this challenging time," Chisholm stated.
Pan Orient started 2020 in a strong financial position with $32.7 million in working capital and deposits in Canada and Thailand. Thailand oil production is expected to fund the 2020 capital program, even at current oil prices.
Looking back at Pan Orient's operations in 2019, at the Thailand concession, two new producing wells came online at the L53-DD field: L53-DD3 and L53-DD4. Production began from the new L53-B1 appraisal well. Discovery was made of the L53-AA South field with the L53-DD5ST1 exploration well. These four wells contributed 447 barrels of oil per day to average oil sales last year.
Net to Pan Orient's 50.01% equity interest, Proven and Probable crude oil reserves grew 34% in 2019 to 1.8 million barrels. Their net present value (NPV) increased 11% to $43.7 million.
Operating expenses in 2019 were 55% lower than in 2018, averaging $6.16 per barrel.
In Indonesia, following drilling of the Anggun-1X exploration well in Q4/19, Pan Orient withdrew from operations in that country.
As for the Sawn Lake asset in Canada, upon evaluation in 2019 with a steam assisted gravity drainage of the oil sands, they were given an 85% chance of development and risked best estimate contingent resources were calculated at 139 million barrels of bitumen recoverable net to Pan Orient's 71.8% interest in Andora, the owner and operator. The risked best estimate of after-tax NPV for Pan Orient's interest was $143 million.
On a corporate level, Pan Orient experienced a loss in 2019 of $25.3 million, or $0.46 per share. The loss in Q4/19 alone was $26.9 million, or $0.49 per share, due to a net $27 million impairment charge for the East Jabung exploration and evaluation assets.
Read what other experts are saying about:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Pan Orient. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Pan Orient, a company mentioned in this article.